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Trump Company produces 100 toaster ovens each month. Each oven uses one electrical circuit. Trump Company is currently manufacturing the circuit in-house but is considering

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Trump Company produces 100 toaster ovens each month. Each oven uses one electrical circuit. Trump Company is currently manufacturing the circuit in-house but is considering outsourcing. Trump Co. can purchase them for $38 each. The current costs of producing circuits in-house includes variable costs of $22 per circuit and fixed costs of 56000 per month Trump Co. would not be able to reduce any fixed costs by outsourcin and that there is no alternative use for the facilities presently being used to make arcuits. If the company outsources, operating income will increase by $3800 decrease by $2200 decrease by $1600 stay the same

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